Abbey failed to keep us in the loop

By THIS IS MONEY
Updated:

 

WE took out a base rate tracker mortgage with Abbey in 2002, when we were told we would be given 'plenty of notice' before the deal expired. This was on 19 December 2004 but we did not get the letter until 29 December, which also informed us that we had been transferred to the bank's standard variable rate of 6.75%.

We have contacted Abbey's customer services and have been told that we have to pay the new rate. Is this right? BB, Preston

Ray Boulger, technical director at mortgage broker Charcol, says: This situation can be looked at in two ways. Morally, Abbey is in the wrong, but borrowers also have a certain responsibility to monitor their own mortgage. However, I would suggest that Abbey's responsibility is greater than yours.

You could remortgage away from Abbey - the bank does not tend to offer its best deals to existing customers anyway - and take the issue to the Financial Ombudsman Service.

Although it might state 'contributory negligence' on your part, you would have a very strong case, especially if you have felt it necessary to remortgage elsewhere.

The Financial Ombudsman Service can be contacted on 020 7964 1000 or at www.financial-ombudsman.org.uk

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